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TORONTO, Aug. 25, 2015 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) provided today an update on the recent acquisition of three retail properties. Leveraging its alliance with its principal tenant, Choice Properties acquired two standalone pharmacies from Shoppers Drug Mart Corporation, a subsidiary of Loblaw Companies Limited. The third property was acquired from a third party vendor, and is located adjacent to an existing Choice Properties owned standalone food store site. These three acquisitions increased the total portfolio size to 515 properties, or 41.4 million square feet.
Acquisition of Shopper Drug Mart Pharmacies
On August 20, 2015, Choice Properties completed the acquisition of two Shoppers Drug Mart standalone pharmacies located at 1428 Highway West, Courtice and 9186 Highway 93 South, Midland in Ontario. The purchase price for the two properties was approximately $18.2 million, excluding transaction costs. The acquisition was immediately accretive with a total stabilized Net Operating Income ("NOI") of approximately $1.1 million, representing an implied capitalization rate of 6.16%. The acquisition was funded through the issuance of 280,155 Class B LP Units of Choice Properties Limited Partnership, which have a value of $3.2 million, and the balance in cash.
1428 Highway 2 West in Courtice is a 30,309 square foot two-storey retail building and 9185 Highway 93 South in Midland is an 18,329 square foot single-storey retail building. Both properties are 100% occupied by Shoppers Drug Mart, each with a 20-year initial lease term and five five-year renewal options.
Acquisition of 3020 Elmcreek Road, Mississauga, ON
On August 11, 2015, Choice Properties acquired a 12,023 square foot single-storey retail building adjacent to an existing Choice Properties owned site located at 3045 Mavis Road, Mississauga. The property is currently 100% occupied by a Liquor Control Board of Ontario (LCBO) store. The total purchase price for 3020 Elmcreek Road, Mississauga was approximately $5.6 million, excluding transaction costs. The acquisition was immediately accretive with a stabilized NOI of approximately $337 thousand, representing an implied capitalization rate of 6.07%. The acquisition was funded through a combination of cash and an assumption of a $2.1 million mortgage. Upon acquisition the property was combined with the adjacent Choice Properties owned site and together re-categorized as a multi-tenant property. The total site area for both 3020 Elmcreek Road, Mississauga and 3045 Mavis Road, Mississauga comprises 9.05 acres with a combined GLA of 92,892 square feet.
About Choice Properties Real Estate Investment Trust
Choice Properties Real Estate Investment Trust is an owner, manager and developer of well-located retail and commercial real estate across Canada. Choice Properties' portfolio spans approximately 41.4 million square feet of gross leasable area and consists of 515 properties primarily focused on supermarket-anchored shopping centers and stand-alone supermarkets. Choice Properties' strategy is to create value by enhancing and optimizing its portfolio through development, accretive acquisitions and active property management. Choice Properties' principal tenant and largest Unitholder is Loblaw Companies Limited ("Loblaw"), Canada's largest retailer. Choice Properties' strong alliance with Loblaw positions it well for future growth. For more information, visit Choice Properties' website at www.choicereit.ca and Choice Properties' issuer profile at www.sedar.com.
SOURCE Choice Properties Real Estate Investment Trust
For further information: Kim Lee, Vice President, Investor Relations and Planning & Analysis, Choice Properties Real Estate Investment Trust, t (416) 324-7899, e email@example.com